FinMin, CEA form GST panel

     The finance ministry has formed a committee under chief economic adviser Arvind Subramanian to recommend what should be the tax rate under the proposed Goods and Services Tax (GST).

This is significant as earlier there were reports that CST will be 27 per cent. However many had expressed apprehension over such a high GST rate. But the finance minister Arun Jaitley had said that GST rate will be lower than 27 per cent.

 The Subramanian committee will recommend possible tax rates under GST that would be consistent with the present level of revenue from the Centre and states.

While making recommendations, the Committee would take into account expected levels of growth of economy, different levels of compliance and broadening of tax base under GST. The committee would also analyse the sector-wise and state-wise impact of CST on the economy. It is expected to give its report within two months.